Chf contractor program_training_v11_110111

Program Training for those Interested in Becoming a CHF Participating Contractor

Contractor Training
CHF Residential Energy Retrofit Program

www.chfloan.org Updated 11/01/11 Page 1

Goals for Today’s Training

• Introduce a New Funding Source for
Energy Efficiency Work

• Explain How the Program Works

• Get You Approved as a Participating
Contractor
Complete your Contractor Application Packet
Take back your checklist of additional documents to
return to CHF
Walk through the entire Process Flow
Walk through the Financial Analysis Worksheet


Bright Blue Packet

LEFT SIDE
• Program Flyer
• Term Sheet
• Eligible Counties & Income Limits
• Availability Map

RIGHT SIDE
• Contractor Participation Packet


What Can the CHF Program Do for You?

Provides a cost-effective way to finance
“whole-house” energy efficiency improvements
1. Lower cost home upgrades
• Provides 100% financing of projects
• Can be combined with Energy Upgrade CA and any other
local, city, county program

2. Maximize the greatest benefit from improvements:
• Lower utility bills
• Create a more comfortable home
• Potentially increase your home’s value

3. Help your local economy through job creation for contractors
and tradesmen


CHF Background / Program Funds

Supporting homeownership since 1993
– CA Joint Powers Authority (JPA) serving over 51 Counties

– Primarily providing loans and grants for “homebuyers”

CHF Energy Program Funds – Current Status
$19M in funds set aside for CHF Loans
$1.4M in funds set aside for CHF Grants

• Loan funds currently 80% allocated
• Contract ends 03/2012 (or when funds are depleted)
• CHF in negotiation with CEC for addt’l $9M in Loan funds


DEL NORTE
SISKIYOU MODOC
Program Available in Over 51 Counties of CA
CHF’s Joint Powers Authority Jurisdiction
SHASTA
TRINITY LASSEN

HUMBOLDT

TEHAMA
Current Interest Rate
PLUMAS
JPA Membership Status
MENDOCINO BUTTE
(for CHF Loan)
GLENN
SIERRA

COLUSA
YUBA
NEVADA
PLACER
Member Counties 0% Promotional Rate
LAKE SUTTER

YOLO EL DORADO
Member Counties 3% Interest Rate
SONOMA ALPINE
NAPA SACRAMENTO
AMADOR
Associate Member Counties 3% Interest Rate
SOLANO
CALAVERAS
MARIN
CONTRA
SAN
JOAQUIN
TUOLUMNE MONO Associate Member Cities 3% Interest Rate
COSTA
SAN FRANCISCO
ALAMEDA
MARIPOSA
STANISLAUS
SAN MATEO
SANTA
MERCED
CLARA
SANTA MADERA
CRUZ

SAN
BENITO FRESNO
INYO
San Jose
TULARE

MONTEREY
KINGS

SAN LUIS
OBISPO KERN
SAN BERNARDINO
1. Availability Map
SANTA
BARBARA 2. Program Term Sheet
VENTURA LOS ANGELES

RIVERSIDE

ORANGE

IMPERIAL
Palmdale SAN DIEGO


Financial Assistance Provided

1. CHF Loan
– 0-3% fixed interest rate, 15-year fully amortizing loan
• 100% financing available
• Loan amount = Net project cost after CHF Grants
• No downpayment or cash from homebuyer required
– No minimum or maximum loan amount
– No prepayment penalty
– Fixture-filing lien placed on installed equip only

2. Plus CHF Grants:
a. 15% of project cost, up to $1,250 per home, AND
b. Up to $700 to cover initial and final energy audits


Leveraging Utility Rebates/Incentives

• Rebate and other Grants programs
– Can be combined with CHF Program
– Can be used as sales incentives / cash in pocket to
borrower (CHF will finance entire project cost)
– Major utility company’s rebates listed on EUC website
www.energyupgradeca.org

• Contractor’s must meet any special training
requirements of other programs


Property Eligibility

• Subject Property
– Single-family, 1-4 unit, residential property
• Manufactured & mobile homes NOT eligible
• Modular homes are eligible
– Property must be free of any judgments, tax or
mechanic liens
– Rental properties are permitted
– Homes > 45 years of age may require additional
approval from State Historic Preservation Office (SHPO)

– No appraisal on house required


State Historic Preservation Act (SHPO)

Purpose:

To ensure proposed projects will have
no adverse effects on any historic
resources

Basic Rules of Thumb

1. Property < 45 Years of age =
Exempt from SHPO approval
a. Unless project includes roofing,
window repair or installation, or
solar installation

2. Property > 45 Years of age =
a. You will have to review list of
exemptions and type of work.
b. If not exempt, SHPO direct
review and consultation will be
required.


Applicant(s) Qualifications

• Applicant(s) = All parties on title
– Must have a current source of income
– Must be current on mortgage and property taxes
– Must meet the program income limit
• Max Income Limit = 160% Area Median Income (AMI)
• Income Limit is based on the combined income of any
parties on title

– No credit check
– No minimum credit score required
– No maximum debt-to-income ratios


Income Limits & Interest Rates

MAX INCOME CURRENT
MEMBER COUNTY
(calculated) INTEREST RATE
Alpine County $133,760 0%
Amador County $106,880 0%
Butte County $92,640 0%
Calaveras County $110,080 0%
Colusa County $86,880 0%

Del Norte County $86,240 0%
El Dorado County $120,160 3%
Glenn County $80,000 0%
Imperial County $71,040 0%
Inyo County $103,360 0%
Lake County $86,720 0%
Lassen County $97,440 0%
Madera County $86,080 0%
Mariposa County $93,920 0%
Merced County $80,800 0%


Income Limits & Interest Rates cont…

MAX INCOME CURRENT
MEMBER COUNTY
Modoc County $74,720 0%
Mono County $119,200 0%
Napa County $136,000 0%
Nevada County $114,560 0%
Placer County $120,160 3%
Plumas County $89,440 0%
San Benito County $125,280 0%
Shasta County $93,120 0%
Sierra County $113,440 0%
Siskiyou County $79,520 0%
Sutter County $93,760 0%
Tehama County $72,960 0%
Trinity County $76,160 0%
Tuolumne County $105,280 0%
Yolo County $121,280 0%
Yuba County $93,760 0%



MAX INCOME CURRENT
ASSOCIATE MEMBER COUNTY

Alameda County $147,680 3%
Contra Costa County $147,680 3%
Fresno County $87,520 3%
Humboldt County $87,840 3%
Kern County $85,280 3%
Kings County $85,760 3%
Los Angeles County (City of Palmdale) $102,400 3%
Mendocino County $87,200 3%
Monterey County $108,480 3%
Riverside County $100,000 3%
Sacramento County $120,160 3%
San Bernardino County $100,000 3%
San Diego County $119,840 3%
San Joaquin County $104,640 3%



MAX INCOME CURRENT
ASSOCIATE MEMBER COUNTY

San Mateo County $162,560 3%

Santa Clara County (City of San Jose) $165,760 3%

Santa Cruz County $134,720 3%

Solano County $130,400 3%

Sonoma County $130,400 3%

Stanislaus County $97,760 3%

Tulare County $78,080 3%

Ventura County $140,960 3%


Energy Efficiency Improvements

Tier I Tier II Tier III (Our primary focus)
Low cost where Provided by a “Whole-House” Concept
no contractor is Single Source
required Builds on the concepts of HERS
II and Home Performance with
Energy Star

i.e. weather i.e. air conditioner Addresses ALL of home’s
stripping & high replacement energy-using features
efficiency light
bulbs Result = Energy Savings,
improved comfort, air quality,
combustion safety, noise
reduction, etc.


Looking at Your Home as a “System”

Solar panels
Inefficient Insufficient or
lighting Cool roof low-grade
insulation in
attic
Inefficient Leaky windows
appliances

Old heating or
Old or cooling system
inefficient
water heater
Bad duct systems

Insufficient
Leaky air spaces
insulation in
basement


Whole-House Approach (Tier III)

Before & After Priorities Examples of
Energy Audit Eligible Work
Initial energy assessment Prioritizes lowest • Insulation
and computer modeling cost/highest benefit • Sealing air spaces
to predict energy savings
• Duct work
• BPI person on staff with
Contractor • Lighting
• Windows
Final energy audit done Renewables • Cool Roof
by a 3rd party HERS II (i.e. solar) • Replacing equipment
Rater • Only considered with energy efficient
• Check equip was after energy models
installed correctly efficiency work • HVAC unit
• Verify predicted energy • Requires at least • Water heaters
savings are still on 10% min in energy
• Other appliances
target efficiency is met
• Solar panels


Financial Feasibility Requirement

NET Cash-flow Neutral or Positive Guideline

• The monthly payment for CHF Loan must
be off-set by the savings from the project

• Financial review takes into consideration
various factors:
– Cash rebates, incentives and tax credits expected
– Standard equipment replacement costs
– Energy savings

• Worksheet and training provided TODAY
for Participating Contractors


Actual Project – See the Program in Action

Without CHF Financing With CHF Financing
Item Subtotal Totals Item Subtotal Totals

Home Improvements $20,686 Home Improvement $20,686
Contract (same work)
• Foam seal attic
• Energy efficient HVAC CHF Grants - $1,950
• Improve/insulate • $1,250 for project
ductwork • $700 for inspections
• Improve insulation CHF Loan (0%) $18,736 $105 / mo
Energy Upgrade CA - $4,000
Net Out of Pocket Cost $0
Utility Rebate
Tax Credit (HVAC unit) - $500

Net Out of Pocket Cost $16,186 Expected energy $2,089 / annual
savings (+40%) $174 / month
Energy Upgrade CA Utility - $4,000
Expected energy $2,089 / annual Rebate
savings (+40%) $174 / month Tax Credit (HVAC unit) -$500

$4, 500 in rebates; can be used as cash in the
homeowners’ pocket OR to pay-down the CHF Loan)

1475

See the Program in Action – Project #2 (Actual Project)

Without CHF Financing With CHF Financing
Item Subtotal Totals Item Subtotal Totals

Home Improvements $14,985 Home Improvement $14,985
Contract (same work)
• Duct replacement
• Energy Efficient HVAC CHF Grants - $1,950
• Attic Insulation • $1,250 for project
• Exhaust Fans • $700 for inspections
• Garage Vent CHF Loan (3%) $13,035 $91 / mo
• Water Heater
Net Out of Pocket Cost $0
Energy Upgrade CA - $4,000
Utility Rebate
Net Out of Pocket Cost $10,985
Expected energy $2,154 / annual
Energy Upgrade CA Utility - $4,000
Expected energy $2,154/ annual
Rebate

$4,000 in rebates; can be used as cash in the
homeowners’ pocket OR to pay-down the CHF Loan)

HOMEOWNERS: How to get started

1. Contact a CHF Participating Contractor
(list available at www.chfloan.org)

2. Setup your home assessment

3. Discuss your options / improvements

4. Contractor will help you apply for the CHF
financing & grants

5. Get CHF approval of loan/grant & project

6. Sign loan documents

7. Energy upgrade!


Break

Up next…

Contractor Participation Requirements


Why Become a CHF Participating Contractor

Challenge Solution
Lack of employment New jobs created through energy efficiency
and solar projects
Can’t close deals because • 0-3% Loan from CHF
homeowner lacks cash • 15% Grant from CHF
Homeowner hesitant • In- and Out-Inspections are FREE to
because of cost for home homeowner
assessment • $700 Grant from CHF for inspections
Costs money to advertise • CHF advertises program / EUC also
• Marketing templates available from CHF
• CHF provides direct referrals to
Participating Contractors
• Participating Contractors listed on CHF
& EUC websites


Contractor Participation Packet

• Participation Checklist

• Participation Agreement

• Waste Management Plan Docs


Contractor Participation Requirements

• General Class B Contractor License

• Standard Insurance Requirements
(Comm. Gen. Liability, Workman’s Comp & Surety Bond)

• Employ a BPI Certified Analyst on Staff
(www.bpi.org)

• Required Experience:
1. “Whole House Performance”
2. EnergyPro Modeling & Analysis Software
3. Proof of two (2) whole-house performance projects
(analysis and installation) completed by contractor
during the preceding 24 months.


Contractor Participation cont…

• Follow Standard Loading Order Principals
– Energy efficiency first, renewable energy last

• Coordination with Local Workforce
Investment Boards (WIBs)
– Contact your local office (www.cwib.ca.gov)
– One-Stop Career Centers for assistance with job
training, job placement and business services
– Quarterly reporting to CHF is required

• File a Waste Management Plan with CHF
– Assistance is provided by CHF (today)

• Attend CHF Training


Waste Management Plan (WMP)

• Required by CEC

• Indicates How Your Business Manages It’s
Waste Stream
– How much of your waste is dumped versus diverted?
– How close are you to meeting the voluntary California
target of 50% minimum diversion?
– Where do you dump or divert?
– Do you handle hazardous waste? How?

• Can you use the generic Waste Management
Plan as your starting point?


WMP Requirement cont…

Required Documents
WMP Plan (MS Word)
(Doc #390228)

WMP Certification &
Compliance Form
(Doc #390244)

Generic WMP Worksheet
(Excel Spreadsheet)


Using the Generic WMP Worksheet

• Assumes Industry Averages for Waste
Streams

• Customizing Detail:
– Company Info
– Dumped or Diverted
– Location
– Number of Jobs Contemplated

• Include completed & calculated worksheet
when submitting your WMP to CHF


DARK Blue Folio (Program Docs)

The Process Flow in 4 Stages

1. Loan & Grant Application

2. Loan & Grant Approval

3. Project Installation

4. Project Completion & Funding


Phase 1: Loan & Grant Application

1. Pre-screening

2. Verify exemption or request approval from
State Historic Preservation Office (SHPO)

3. Contractor performs Initial Energy Audit &
Completes Financial Feasibility Analysis

4. Submit Loan & Grant Application Package


Phase 2: Loan & Grant Approval

1. CHF reviews Loan & Grant Application
Package
– Funds are on a first come, first serve basis
– Incomplete applications will hold up a reservation
– CHF will extend or denied credit to Applicant(s) and
notify both Applicant(s) and Contractor
– Upon credit approval, CHF will provide Loan
Documents to Contractor for Applicant(s) signature

2. Contractor returns signed Loan Documents
to CHF with an estimated completion date
for the project


Phase 3: Project Installation

1. Upon receipt of signed Loan Docs, CHF will
wait mandatory 3 business days for
Applicants “Right-to-Cancel” period

2. If Right-to-Cancel is not received, CHF will
issue Notice of Loan & Grant Approval to
Contractor

3. Contractor may start the project

4. All retrofit work must be completed as set
forth in Home Improvement Contract and
Initial Energy Audit


Phase 4: Project Completion & Funding

1. Contractor orders Final Energy Audit from
an independent 3rd-party HERS II Rater

2. Contractor requests Closing Docs from
Title Company

3. Contractor requests Applicant(s)
signature on Closing Docs

4. Contractor returns signed Closing Docs
to CHF


Phase 4: Project Completion & Funding

5. Contractor releases liens and sends Final
Docs to CHF

6. CHF reviews and approves Completion
and Funding Package and notifies Title
Company to release Funds to Contractor

7. CHF send Home Performance Data Labels
to Homeowner to place on installed
equipment
– (report will be published to CHF website)


Break

Up next…


Financial Feasibility Worksheet



NET Cash-flow Neutral or Positive Guideline

• The monthly payment for CHF Loan must
be off-set by the savings from the project

• Financial review takes into consideration
various factors:
– Cash rebates, incentives and tax credits expected
– Standard equipment replacement costs
– Energy savings

• Let’s complete the Worksheet!


CHF Support Services

• Website: www.chfloan.org

• Customer Service Dept:
M-F 8AM – 5PM
(855) 740-8422
info@chfloan.org

• Additional “Procedures Training” after
Contractor is Approved to Participate

• CHF Marketing Support


CHF Marketing Materials


Thank You For Your Participation

CRHMFA Homebuyers Fund (CHF)
1215 K Street, Suite 1650
Sacramento, CA 95814
(855) 740-8422
www.chfloan.org
info@chfloan.org

Presentation contains program highlights only. Income limits and other program guidelines apply. Contact CHF for full
program guidelines and participation requirements.
The CHF Residential Energy Retrofit Program is sponsored by CRHMFA Homebuyers Fund (CHF), a government
entity in California. Funding for the program is made possible through a grant award from the Energy Commission of
the State of California.


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